Demand from pandemic sees UK housing prices highest in 16 years

  • 5 Oct 2020

The UK’s housing market has seen the highest month-on-month growth in property prices since February 2004, which has been fuelled by coronavirus and changing lifestyles.

The average home is now worth around £225,000 in the UK, which included a 3% increase in August 2020.

Despite a national recession, demand for homes is up 34% than one year ago, particularly for four and five bedroom homes with gardens, as households adjust to lifestyle changes following COVID-19.

Rightmove explained in their weekly newsletter that this change in demand was driven by people looking for more space, whether for the family members to stay with them or to include remote working as well.

Especially, with an interest to live in the countryside or places which had more green space.

They explained ‘the strongest sector is top of the ladder, which includes four-bed detached homes and larger. The number of sales being agreed, compared with the same period last year, more than doubled in August in this sector, up by 104%.’

‘While in the second-stepper sector (three- or four-bed homes excluding four-bed detached) they were up by 55%. The first-time-buyer sector of two bedrooms or fewer, although not as strong as the larger homes sectors, still saw sales agreed up by 36%.’

Accordingly, with remote working now crucial for any employee and company, we essentially have more people interested in the same type of property.

Whilst you may have only needed a three bedroom home, you may now be actively looking for a four or five bedroom – and you may be looking in the outskirts, since you do not have to commute and want to get better value for money.

The result? Growth in property prices all around, except the offices which are going to get hit pretty hard.

Nationwide chief economist, Robert Gardner, commented: “The bounce-back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions.

“House prices have now reversed the losses recorded in May and June and are at a new all-time high.

“This rebound reflects a number of factors. Pent-up demand is coming through, where decisions taken to move before lockdown are progressing.

“Behavioural shifts may also be boosting activity, as people reassess their housing needs and preferences as a result of life in lockdown.

“Our own research, conducted in May, indicated that around 15% of people surveyed were considering moving as a result of lockdown.”

Although the growth in house prices is exciting, homeowners and buyers should approach with caution, warns specialist finance provider, MT Finance.

The provider wrote on their website that ‘the long-term impact of the COVID-19 pandemic and resulting lockdown will not begin to be borne out until the furlough scheme has truly ended in October.;

‘Only then will we have visibility on the resulting unemployment numbers and the impact this will have on the nation’s finances and indeed the property market.’

Leave a Reply

Latest news

Contour Heating

Top five reasons to choose Contour radiator covers for hospitals

This article looks at five key reasons for choosing Contour, UK innovation leaders for LST radiators, anti-ligature radiators and the radiator cover market, when refurbishing your healthcare environment.

Posted in Articles, Building Industry News, Building Services, Health & Safety, Heating Systems, Controls and Management, Heating, Ventilation and Air Conditioning - HVAC, Interiors, Plumbing

Vortice

Vortice welcomes Graeme Bonds to sales team

Experienced ventilation specialist Graeme Bonds has joined the Vortice sales team as Area Business Manager for the South West.

Posted in Air Conditioning, Articles, Building Industry News, Building Services, Heating, Ventilation and Air Conditioning - HVAC, Recruitment

Freefoam

Colin St John reflects on Freefoam 30 year anniversary

Whilst no one could have predicted the tumultuous events of 2020, one milestone that was always going to be in the calendar was Freefoam Building Products reaching 30 years in business.

Posted in Articles, Building Industry Events, Building Industry News, Building Products & Structures, Cladding, Drainage, Guttering, Soffits & Fascias, Fascias, Roofs, Video of the Week, Walls

Contour Heating

Selecting LST Radiator Guards for Hospitals - Contour

Contour understands the challenges that hospitals are faced with when looking for LST radiators, Anti-ligature radiators and the radiator covers, with the priority being the safety and wellbeing of patients by creating an environment they feel comfortable in.

Posted in Articles, Building Industry News, Building Products & Structures, Building Services, Health & Safety, Heating Systems, Controls and Management, Heating, Ventilation and Air Conditioning - HVAC, Interiors